How haphazard layoffs hurt companies and employees

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Some of those profit losses stem from declines in productivity, since cutting staff means there are fewer people around to meet company goals. But the performance of employees left behind also suffers as they deal with a mixture of heightened anxiety, fear and survivor’s guilt that affects the quality and quantity of their work. Almost three-quarters of people who watched colleagues get pink slips say their motivation to work has fallen as a result, according to a recent survey by Bizreport.

Of course, there are often good financial reasons why companies might need to cut jobs. Markets shift, revenue sources appear and disappear, economic hardship bites, and executives are forced to make hard decisions. For companies headed toward bankruptcy, job cuts are necessary to rein in costs.

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